Second, the manager assumes that Saludas employees do not exercise regularly. Once again, the manager offers no support for this crucial assumption. Obviously, if all of Saudas employees already engage in daily exercise, the hospitalization rate will be unaffected by equipping an exercise facility and no savings will be realized on the group health insurance.
Third, the manager assumes that there is a direct relation between the hospitalization rate for employees and the cost of their group health insurance such that a reduction in the hospitalization rate will result in a corresponding reduction in the cost of insurance. While this may turn out to be true, the manager has failed to offer any evidence for this claim.
Finally, the manager assumes that the cost of building a well-equipped exercise facility will not negate the savings realized on the group health insurance. Until evidence has been provided to show that this is not the case, the managers plan is unacceptable.
In conclusion, the business managers proposal to provide an exercise facility as a means of balancing Saludas budget is not convincing. To strengthen the argument, evidence would have to be provided for each of the assumptions listed in the previous analysis.
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